LONDON - The city
watchdog is said to be looking into accounts of peer-to-peer
lender Lendy Finance, according to
The Telegraph, as it applies for authorisation.

The UK's peer-to-peer lenders will soon have to disclose more
detailed information about how much investors have lost on loans.

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An
ongoing FCA consultation into creditworthiness in consumer
credit was begun in July, prompted by concerns about the risk of
potential harm to customers from poor culture and practice by
firms.

Although Lendy said its due diligence team had been strengthened
this year, it told investors last week it was suspending a £3.4
million loan on Westbury Castle Estate, because of an "adverse
opinion" on the property value, according to The Telegraph.

"As part of our application for full FCA authorization, we meet
with the FCA on a regular basis," a spokesperson for Lendy told
the paper. The company also said it had the option of pursuing
legal remedies cases of negligent overvaluations.